BUSINESS REPORT

Protecting Human Life and Mother Earth

To Shareholders and Investors

InterimBusiness Reportfor the88th Term

From April 1, 2020
to September 30, 2020

Securities Identification Code: 6455

Top Message

Greeting

Over the years since our company was founded in 1907, wehave shared the path with the history of Japan’s firefighting
technology development as a top manufacturer of firefighting vehicles. We would like to express our deepest
appreciation for the warm support and patronage ofshareholders and all those concerned.
The Morita Group has the slogan “Protecting Human Lifeand Mother Earth” and develops our four businesses of FireFighting Vehicles, Fire Protection Equipment & Systems,
Recycling Machines and Environmental Conservation
Vehicles while remaining committed to its mission ofprotecting human lives and property and the irreplaceable
nature on Earth and, to that end, we continue trying to comeup with greater innovations and creating new values.

In April last year, we established our new Mid-term Plan
“Morita Reborn 2025”, which sets fiscal 2025 as its final fiscal
year. In this plan, we set our basic policies as “increasing
the profitability of our existing business”, “cultivating andexpanding overseas businesses and new businesses”,“enhancing basic research capabilities and new productdevelopment”, “developing innovative human resources”
and “promoting CSR activities”. We will positively implement
these policies in order to become a global company
providing comprehensive disaster prevention solutions. With
all our energy, we will continue working on becoming acompany group widely trusted by society, so we would ask
for your continued support.

Masahiro Nakajima, Chairman & CEO
Kazumi Ogata, President

Overview of the first half of 88 th TermNet sales

Operating income¥28,163 million¥810 million

Ordinary income

Profit attributableto owners of parent¥1,018 million¥504 million

Year on year

Year on year

Year on year

Year on year

Down

Down

Down

Down

11.1%

43.1%

During the consolidated cumulative second quarter of
FY2020 under review, our nation’s economy suffered due tothe limitations on social and economic activities caused by
COVID-19 pandemic. While signs of recovery in economic
activity could be discerned after the state of emergency waslifted, the future of our nation’s economy is still extremely
unpredictable due to concerns about a second wave ofinfections.
In such a business environment, our group has been working
on reducing the risk of infection to our employees and all of
our other stakeholders, carrying out business activities whileengaging in infection prevention measures.
With respect to our business results, while domestic orders

34.6%

75.6%

in our core Fire Fighting Vehicles business have remained
positive direction, the impacts of COVID-19 pandemic –such as restrictions on sales activities and delays in sales
being made – meant that net sales decreased by 3,515
million yen from the previous year to 28,163 million yen(-11.1%), operating income decreased by 614 million yen fromthe previous year to 810 million yen (-43.1%), and ordinary
income decreased by 539 million yen from the previous year
to 1,018 million yen (-34.6%). Quarterly profit attributableto owners of parent decreased by 1,561 million yen to 504
million yen (-75.6%) due to the sale of fixed assets (the former
Tokyo head office) in the same quarter the previous year.MORITA NEWS
Morita, the fire truck experts, exhibited at RISCON TOKYO (Security &Safety Trade Expo) 2020 on the theme of “Controlling Water”

Fire FightingVehicles Business

Morita showcased its products at the RISCON TOKYO (Security & Safety Trade Expo) 2020, held at Tokyo Big Sight from Wednesday,October 21 to Friday, October 23 this year. In recent years, typhoons and localized severe rain have become even more intense acrossJapan, leading to water damage including destruction of houses and widespread flooding from rivers breaking their banks. On the themeof “Controlling Water,” Morita’s exhibit at RISCON featured numerous solution offerings such as the “FAN-BEE” rescue airboat, a toilet
vehicle, the “Red Ladybug” compact off-road fire truck, and a fold-up electric equipment carrier.
The Morita Group will continue pursuing its vision of providing comprehensive disaster prevention solutions. Without merely following
conventional methodology, we will continue providing novel technologies, products, and services which mitigate a wide range of risks andthus contribute to the creation of a "safe, comfortable and prosperous society."
Featured products exhibited“FAN-BEE” rescue airboat
Boat enabling safe rescue operations during
increasingly severe large-scale flooding events
Its greatest feature is the propulsion unit mounted above
the hull, giving a flat-bottom structure with nothing
protruding into the water. The smooth, flat hull enables
safe travel through flooded disaster sites - even whenobstructions are hidden in the water or floating debris
is present - as well as across shallows and sandbars.
This feature can be utilized to support a wide range ofactivities, from saving lives to transporting materials.

The toilet vehicle - a new standard in mobile restrooms“Red Ladybug” compact off-road rescue truck

Mobile, temporary flushing toilets: Delivering what people
would love to have.

In recent years, the number of natural disasters (such asearthquakes and landslides) which severely disrupt thetransport network has been increasing in Japan, making
access to disaster sites by traditional rescue trucks
difficult. The Red Ladybug is a rescue truck with excellent
off-road performance and carrying capacity, enabling selfpropelled access to disaster sites in difficult-to-reachlocations. In addition, registration as a large specialpurpose motor vehicle enables us to use as a cargotransportation vehicle even in normal times, making theRed Ladybug a new generation of rescue truck.

There are many problems with conventional temporary toilets, including setup
hassle, issues topping up with fresh water, and difficulties in dealing with thewaste. Toilet vehicles are a ground-breaking innovation which solves theseissues in one stroke. They can be used not only at evacuation shelters, but also
at disaster recovery work sites and various event venues for ceremonies.

Morita has established a special website showcasing the products exhibited atRISCON TOKYO, featuring videos of product demonstrations filmed at the Morita
booth during the event.
https://www.morita119.com/riscon-tokyo2020/

Cover page

Picture drawn by Ren Yamaguchi (4th grader in Agatsuma county, Gunma Prefecture *at the time of application),winner of the first prize in the 15th "Future fire truck" idea contest for elementary students nationwide.

Net sales

Operating income■ : First half

Unit: Millions of yen

91,52485,502

27,5162019.3■ : Full-year

8,100

8,855

(Forecast)

28,1632021.32020.3

1,424

1,093

2018.3

Ordinary income

2019.3810
2021.32020.3

Profit attributable to owners of parent

Unit: Millions of yen

9,030

9,483

8,483

(Forecast)

950
2018.3■ : First half

Unit: Millions of yen

83,00086,922

31,67831,925■ : Full-year

10,104■ : First half

■ : Full-year

9,326

8,600

■ : First half

Unit: Millions of yen

6,971

6,391

5,741

(Forecast)■ : Full-year

5,400(Forecast)

2,065
1,242
2018.3

1,557

1,379
2019.3

1,018
2021.32020.3728

664
2018.35042019.3

2021.32020.3

Performance by Segment
Fire Protection Equipment& Systems BusinessFire Fighting Vehicles BusinessNet sales

Operating loss

Net sales

Operating income

Year on year

Previous year:
Income of227 million yen

Year on year

Year on year

Down 12.5%

Down 32.2%

7,290 million yen
Down 8.9%114 million yen

Slow sales of fire extinguishers led
to decreased sales and income.

Environmental Conservation
Vehicles BusinessNet sales

Operating income

Year on year

Down 5.0%

13,942 million yen

Delays in some overseas
sales being made led
to decreased sales andincome.

25.9%17.3%

Net sales
composition

7.3%

378 million yen

49.5%

Recycling Machines BusinessNet sales

Operating income

Year on year

Year on year

Year on year

Down 22.1%

Down 21.5%

Down 17.4%

4,880 million yen 312 million yen

Slow sales of garbage
collectors led to decreased
sales and income.

2,050 million yen 182 million yen
Slow sales led to decreased
sales and income.

OPER ATION HIGHLIGHTS

Financial Highlights (Consolidated)Company Profile and Stock Information
Company NameFoundedEstablished
Paid-in capital
Osaka Head Office
Tokyo Head OfficeBusiness

MORITA HOLDINGS CORPORATION
April 23, 1907
July 23, 1932
4,746 million yen
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka
5-36-7 Shiba, Minato-ku, Tokyo
Control/management of business activities ofgroup companies, and being entrusted withindirect management operations

Major Group Companies
MORITA CORPORATION 1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

Development, manufacturing and sales of laddertrucks, fire trucks, and specialty vehicles

MORITA MIYATACORPORATION

3-5-7 Ariake, Koto-ku, Tokyo, 135-0063, Japan
Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, firefighting equipment and other fire
protection equipment

1530 Konoda-cho, Funabashi-shi,
MORITAENVIRONMENTAL TECH Chiba, 274-0081, Japan
Design and construction of waste recycling facilities
CORPORATION
and other waste disposal facilities. Development,manu f a c t ur in g an d s al e s o f larg e hydr auli cequipment

Executives
Chairman & CEO
President
Director and Managing Executive Officer
Director and Managing Executive Officer
Director
Director
Director
Full-Time Corporate Auditor
Full-Time Corporate Auditor
Auditor
AuditorMasahiro Nakajima
Kazumi Ogata
Kunio Morimoto
Shinichi Kanaoka
Mitsuo Isoda
Takao Kawanishi
Masaki Hojo
Eiji Asada
Atsushi Miyazaki
Masaru Ota
Shozo Nishimura
Shinya Murai
Naohisa Sakamoto
Mitsuru Ito

Managing Executive Officer
Executive Officer
Executive Officer

Information about the Stock

MORITA ECONOSCORPORATION

28 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA TECHNOSCORPORATION

32 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

Development, manufac turing and sales ofenvironmental conser vation vehicles such as
sanitation vehicles and garbage trucks

Aftercare service and maintenance of fire trucks andof rescue equipment. Development, manufacturing
and sales of electronic applied machinery andinformation processing machinery

BRONTO SKYLIFT OY AB Teerivuorenkatu 28, FI-33300 Tampere,
FinlandDevelopment, manufacturing and sales of combined
platform ladders and aerial platforms

Breakdown of Shares
by Type of Shareholder
Treasury shares 3.2%

Securities companies

0.3%

Other Japanese
corporations

8.1%

Non-Japanese
corporations

Fiscal Year

April 1 to March 31

15.7%

Annual General Meeting ofShareholders

June

Individuals/others

Total46,918,542shares

Annual General Meeting of Shareholders - March 31
Year-end Dividend - March 31
Interim Dividend - September 30
Other dates published in advance as necessary

Major Shareholders (Top 10)

Method of Public Notice

Posted as electronic public notice on company website
https://www.morita119.com/kohkoku/index.html

Name

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Handling Office ofShareholder Registry
Administrator

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
4-5-33 Kitahama, Chuo-ku, Osaka-shi, Osaka(Postal Address)

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063(Telephone Inquiries)+81-3-3323-7111

Custody Bank of Japan, Ltd.

(Internet Website URL)

https://www.smtb.jp/personal/agency/index.html

AIR WATER INC.

Stock Exchang Listing

Tokyo Stock Exchange

As of September 30, 2020

The Master Trust Bank of Japan, Ltd. (Trust account)
Morita Trading-Partner Shareholding Association
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation

NORTHERN TRUST CO. (AVFC) RE HCR00

No. of shares(thousand)

3,265
2,3762,254
2,087
2,082
2,048
2,007
1,843
1,730
1,065

Notes: 1. Number of shares held is rounded down to the nearest thousand shares.
2. The Company holds treasury shares numbering 1,482 thousand shares.

100 shares

Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045
Tel. +81-6-6208-1907

Tokyo Head Office
MORITA HOLDINGS CORPORATION

44.6%

The Dai-ichi Life Insurance Company, Limited

Shareholder Registry
Administrator

Protecting Human Lifeand Mother Earth

Financial institutions

28.1%

Reference Dates

Number of shares per unit

As of September 30, 2020

5-36-7 Shiba, Minato-ku, Tokyo, 108-0014
Tel. +81-3-6400-3480

https://www.morita119.com